A demo account is a virtual profile for conducting deals on Forex. All transactions on it are conducted with virtual money, but quotes and the trading process are just like on a real market.
Trading on a demo account is an excellent training tool to boost skill development for beginners and experienced players. You can safely test a strategy, check out any theory about the market, and get your hands on transactions without risking money. In other words, if you are starting your Forex trading experience, don’t ignore the test mode.
DotBig broker provides clients with the Demo option. In addition, the platform offers other advantages for customers of any trading level.
Features of Demo Profile
Today, some brokers offer traders the option of a free account. The real-money and demo accounts do not differ in market conditions and data security.
Demo is an account through which clients of the brokerage company speculate on existing financial markets for free. Here, participants operate with virtual money but not with real funds. This helps beginners to master trading in various markets, understand the principles of trading terminals on DotBig Forex site, and much more.
It should be noted that advanced users also use a demo account when trading on Forex. It is helpful for them because it helps them familiarize themselves with new tools and develop new strategies without putting real money at risk.
Since virtual currency training is the only function of the demo account, you cannot withdraw the earned funds. By trading for free, novice traders can develop their decision-making skills, which are vital when trading with real money.
If you have any questions about these issues, do not hesitate to contact the broker online.
Demo Account Benefits
Proper use of a demo account can be very fruitful in trading, improving its results: the number of profitable trades increases, while the number of unprofitable ones gets low. The trader hones his financial strategy and brings it to perfection.
Advantages of conducting transactions on a demo account:
- A beginner will be able to see how Forex trading takes place and understand whether this type of income generation is suitable for him.
- The ideal way to learn: visually and safely. There’s no need to risk real money. All transactions are conducted the same way as in the real financial market: according to the same scheme and quotes, but the profits and losses are virtual. A Forex trader immerses himself in the environment, learns, corrects mistakes, and gains experience thanks to the test mode.
- Emotion management. Problems with self-control are one of the main reasons for unsuccessful deals. With a demo account, one can learn how to manage emotions: monitor your feelings when making large profits or losses and control them.
- Honing trading skills. Not only beginners but also experienced traders use a demo account to test strategies. This makes it possible to see and correct mistakes in time, which in reality would have resulted in great losses.
How to Start Demo Trading with DotBig?
If you decide to try online trading, you should not immediately risk real money. Take the first steps in the test format.
The trusted international DotBig Forex broker will help you with this. A virtual deposit provides newbies and experienced ones with an opportunity to learn how to trade stocks and other assets on the stock exchange for free. Take a couple of minutes to activate a demo account and master Forex without money risk.
With a demo account on DotBig, you can work with all the assets you would trade on a live account. However, the difference is that here you don’t pay real money for your mistakes. This is your best opportunity to understand how markets work in real conditions. This is also your chance to familiarize yourself with DotBig terminals and tools.
According to DotBig reviews, its demo account is an opportunity to get closer to more than a thousand financial instruments. Learn to trade currency pairs on Forex, stocks, commodities, indices, and cryptocurrencies. Gain many valuable skills in speculating on contracts for difference. Get acquainted with the advantages of investing in exchange-traded funds. All this will help you prepare for conducting Forex deals on a live account.
Main Demo Account Features
- A demo profile is a free trading tool where users can run deals on virtual money. On it, novice investors practice their skills in the financial markets, study the features of trading terminals, clarify how to choose the right deals, etc.
- Experienced Forex participants can also work with the demo account to familiarize themselves with new Expert Advisors and trading strategies, offered by DotBig investments.
- Online dealers cannot withdraw real money from their demo profiles, but they will not lose anything in case of a failed transaction.
- The demo tool allows beginners to hone their trading skills, as in the real market all decisions need to be made as quickly as possible.
- Demo and real-money accounts have the same trading conditions, so you can check the broker’s reliability without financial risks.
How Much Time Does it Worth to Trade on Demo?
The purpose of trading on a demo account is to gain experience. You need to identify all the standard and non-standard points in your strategy, and for this, you need to make a significant number of trades.
Therefore, for different tactics, the period needed to bust experience will be different. You must admit that when trading on hourly charts, you will get more signals per week than on daily charts.
But if you name some specific numbers, you get the following:
- Trading on hourly charts and below – 2-3 weeks minimum.
- Trading on 4-hour and daily charts is approximately 3 months.
Well, now the most interesting thing is, when should you switch from demo to real trading?
Time To Switch to Real-Money Deals
There are three basic signs for this:
- You have conducted more profitable trades than unprofitable ones. You must learn how to benefit in the market and do it consistently. And it’s not so important how many dollars you’ve earned, it’s much more important what percentage of all your trades are profitable. Of course, everything depends on the specific strategy, the ratio of average profit/loss, etc., but in general, 6-7 out of 10 deals should be successful.
- You follow money management. Position size management is one of the main success factors. No Forex strategy provides 100% profitable trades. There will be periods when you will receive losses, there is no other way. Thus, it is better to choose the size of the trading losses so that in the case of unprofitable deals, you do not lose too much, and in the case of successful positions with the DotBig exchange, you earn a worthwhile profit.
- You control your emotions No matter what you say but emotions highly matter. And you should learn how to deal with them. Of course, emotions are more pronounced on a real account than on a demo account (because real money is at stake), but you can still develop some experience. Always stay calm about losses, because you know that losses are part of trading, as long as there are more profitable trades. But you should also stay calm about profits: don’t get euphoric, and keep your judgment clear in market analysis. Excessive optimism often leads to wrong decisions and opening deals from scratch.